ScoreWhy is Karnika Industries Ltd ?
1
Healthy long term growth as Operating profit has grown by an annual rate 31.05%
2
Positive results in Mar 26
- NET SALES(9M) Higher at Rs 191.00 cr
- PAT(9M) Higher at Rs 23.60 Cr
3
With ROCE of 20.1, it has a Attractive valuation with a 5.5 Enterprise value to Capital Employed
- Over the past year, while the stock has generated a return of -100.00%, its profits have risen by 48% ; the PEG ratio of the company is 0.7
4
Despite the size of the company, domestic mutual funds hold only 0% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
5
Below par performance in long term as well as near term
- Along with generating -100.00% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Karnika Industri should be less than 10%
- Overall Portfolio exposure to Garments & Apparels should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Garments & Apparels)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Karnika Industri for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Karnika Industri
-0.15%
0.00
53.43%
Sensex
-8.21%
-0.61
13.09%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
21.60%
EBIT Growth (5y)
31.05%
EBIT to Interest (avg)
4.54
Debt to EBITDA (avg)
2.29
Net Debt to Equity (avg)
0.74
Sales to Capital Employed (avg)
1.27
Tax Ratio
27.08%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
18.64%
ROE (avg)
26.76%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
32
Industry P/E
0
Price to Book Value
8.86
EV to EBIT
27.44
EV to EBITDA
26.16
EV to Capital Employed
5.52
EV to Sales
4.07
PEG Ratio
0.66
Dividend Yield
0.07%
ROCE (Latest)
20.11%
ROE (Latest)
28.04%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Sideways
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend15What is working for the Company
NET SALES(9M)
Higher at Rs 191.00 cr
PAT(9M)
Higher at Rs 23.60 Cr
-5What is not working for the Company
PBT LESS OI(Q)
At Rs 4.06 cr has Fallen at -46.4% (vs previous 4Q average
OPERATING PROFIT TO NET SALES (Q)
Lowest at 9.43%
NON-OPERATING INCOME(Q)
is 63.78 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Karnika Industri
Net Sales - Latest six months
At Rs 121.27 cr has Grown at 60.81%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 7.92 cr has Grown at 26.6% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 6.26 CrMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Here's what is not working for Karnika Industri
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 4.06 cr has Fallen at -46.4% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 7.57 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 9.43%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Non Operating Income - Quarterly
is 63.78 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
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